HCP: Morocco's Economy Grew 4.1% in the Third Quarter
Morocco's High Commission for Planning reports 4.1% economic growth in Q3 2026, led by agriculture, as industry keeps declining and the dirham weakens.
Morocco's High Commission for Planning (HCP) reported that the national economy grew 4.1% year-on-year in the third quarter of 2026, according to its economic outlook note published on 14 October 2026. The economy remains, per the HCP, "resilient" despite the ongoing energy shock weighing on industry since the second quarter.
Agriculture drives growth as industry keeps declining
The main support for growth came from agriculture, up 19.9%, while services rose 3.9%, led by accommodation and food services and by non-market and financial services. Industrial activity, by contrast, continued to decline by 1.9%, a smaller drop than the previous quarter: food processing, automotive, and electrical equipment held up better, while textiles, chemicals, rubber, and electronics remained weak.
| Sector | Change |
|---|---|
| Agriculture | +19.9% |
| Services | +3.9% |
| Industrial activity | -1.9% |
Negative inflation, but uneven across goods
Inflation posted a slight 0.3% decline, a figure that masks a sharp contrast between categories: food prices fell 3.6%, driven by lower prices for chicken, vegetables, eggs, and olive oil, while non-food prices rose 2.4%, driven mainly by energy costs, in a continuation of the impact of rising fuel prices on households and businesses.
The dirham weakens as Bank Al-Maghrib holds its rate
The dirham depreciated 3.8% against the US dollar and 2.2% against the euro over the period, while Bank Al-Maghrib kept its key rate at 2.25% for a sixth consecutive quarter. Meanwhile, credit growth to the economy accelerated to 11.1% year-on-year, up from 8.4% in Q1 and 11.6% in Q2, driven mainly by equipment and cash-flow loans. Official reserve assets rose 19.9%, and the money supply grew 11.9%.
Casablanca Stock Exchange corrects despite higher market cap
The Casablanca Stock Exchange's MASI index lost 6.8% in the third quarter of 2026, extending a correction that began in January of the same year after a strong 2025. Despite the decline, the total market capitalization of listed companies rose 4%.
What this means for households and businesses
The HCP report shows that Morocco's economy currently relies heavily on the agricultural season to offset industry's struggles, leaving the pace of growth exposed to weather swings. The HCP had reported, in an earlier report, a growth rate of 4.7%, confirming that the economic trajectory remains unstable despite positive figures. For households, a stable key rate and falling prices for some staple foods provide some relief, while energy and import costs stay under pressure from the weaker dirham.